The last year has brought a whirlwind of tax changes, credits, and COVID relief. Here’s what you need to know about your 2021 estimated tax requirements:
Estimated tax payments are required if you have a tax liability of $1,000 or more that is not paid through payroll withholdings.
If you wait to pay tax due until your tax return is due, you’ll have to pay penalties in addition to the tax due.
WHEN? 2021 estimated tax due dates:
HOW TO PAY? You also have a couple of payment options:
If you are an employee of your company (e.g., S-Corp owners), and you use Gusto or another payroll system, you can pay your federal and state income taxes through additional tax withholdings instead of making estimated tax payments manually.
Pay by Bank Account (you’ll be charged a fee to pay by credit card)
Reason for Payment: Estimated Tax
Apply payment to: 1040ES
Tax period for payment: 2021
Fill out the rest of the info…
Payment type: 140-ES
Filing status: Choose the status that matches your tax return
Fill out the remaining information
Other state websites: https://taxpayne.com/resources/forms-documents-and-links
If you have an EFTPS account, you can pay electronically. Be sure to initiate payment at least one day in advance of the due date.
You can pay by check if needed. Considering the current IRS backlog, we don’t recommend this. https://www.irs.gov/forms-pubs/about-form-1040-es
Tax return reminder:
Individual tax returns, including any tax due for the 2020 tax year, are due on May 17 this year.
If you would like us to prepare your return, and you haven’t sent us information yet, we’ll likely extend your return until after the due date.
Please provide us with any information we will need to calculate 2020 tax due before April 7, so that we can make sure your tax gets paid timely.